20 Investment and Money Making Principles
Making money online and offline usually requires some strategic thinking and planning ahead. Investing is a field that provides several useful insights one can apply to the business of earning money from online websites and properties.
In finance terms, investment involves the purchasing of securities or assets in money markets with the hope of getting monetary returns through future cash flow.
When used in business management parlance, investment generally refers to the purchase of assets (technology, machinery, patents etc.) to develop positive income.
The basic principles here apply to each blogger, webmaster or online entrepreneur; To be successful, you need to invest and reinvest time and money on positive online assets and monitor costs/profits, while planning ahead.
Take a quick look at all your websites or online businesses to see if each of them are profitable. Are they bringing in more money than they cost in terms of time and expenses? What is their projected income?
If you’re primarily trying to earn a living online, there is no point in owning websites which do not make money. Consider cutting your losses and recovering your invested expenditures by selling or giving these sites to others.
20 Money Making Principles to Follow: A Thought Exercise
I’ve previously written that income reinvestment can be used to build traffic and authority and I’ll just like to supplement that by linking to a recent CNN article with a list of 20 Timeless Money Rules.
The article largely focuses on financial investments but there are some general principles which I found useful. Instead of giving you my version of the 20 money rules, I’ll suggest reading them yourself for some mental exercise.
Here’s what you can do while reading the article:
- Try to connect the dots between the principles you read and how you currently manage your assets. Learn how to extract the underlying essence from any information you come across online and you will naturally create insightful content that is unique and non-repetitive.
- Make the article relevant to you by introspectively reflecting on your personal habits when it comes to making or spending money. Personalizing information you read is of the best ways to absorb or understand it.
- Put into practice the principles you can immediately use for your own website or personal life. Take away something you can act upon after reading the article. This makes information useful and not just clutter in your brain.
It’s refreshing to step outside of the usual webmaster/entrepreneur mindset and investing is an excellent parallel discipline that will give you insights on how to better develop your online business or sites.
Enjoy the read and feel free to share any thoughts you might have in the comments.
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Sure, that makes perfect sense to think of your online businesses as an investment–they are an investment, one in which you are investing “sweat equity” as well as capital. I’m constantly starting new blogs and after a certain time period of reasonable attention and effort, they are abandoned if they don’t perform.
There is a whole business world online, the problem is when people think that because they start a blog/site/whatever they already have a business.
It takes time, creativity, effort and that little bit of luck to succeed in the online world, as it does in the “real world”
Thank you for this particular article! When you’re starting out, I find it is very easy to get lost in the exciting world of online income generated by blogs. The insights this article provides helps me ground my ideas and build a better foundation for setting up an online business.
It is so true that in order to create the best possible business you need to follow these rules as strictly as possible. However most people starting out (or even people that have been working their sites for years) are having difficulties following these strategies. Reasons vary but for the most part I think that people neglect it because it is too “abstract” for them. Building websites are easy but planning, acting and evaluation is not normal for most people – some only get to the planning part but I believe that the majority skip planning and heads strait for action and never evaluates. I know I have been caught in that trap a few times (and still do).
I love your articles that relate website ventures to real business principles. It’s too often we get caught up in SEO and crap like that…
The key to this blog really is, “invest and reinvest time and money on positive online assets and monitor costs/profits, while planning ahead.” I could not stress this enough myself. I’ve read about this before too in a book, “Millionaire Zone.” If you spend enough time and money on profits, assets, and plan ahead you can get there. I’ve been spending more and more time on my profits, resources, etc…while planning ahead of where I want to be in the near future. If you are really passionate and determined to get to where you want to be you will find the time and invest it again and again. Time, it’s all about time and of course money!!